Wednesday, 12 December 2012

Kurdistan oil wrapped in red tape - The National

Bureaucratic red tape is hampering efforts to ramp up oil production in Iraqi Kurdistan, with companies struggling to procure equipment and visas.

"It's a barrier to getting there," said Dave Hanson, a project manager at DNO International, which is looking to double output at one of the autonomous region's largest oilfields. "Unfortunately, we can't find a way to work with it, we have to find a way to work around it."

DNO, which last year merged with the UAE's RAK Petroleum, was granted three licences by the Kurdish Regional Government (KRG), and is producing about 100,000 barrels per day (bpd) at the Tawke field. The company is racing to increase production further, and is targeting a capacity of 200,000 bpd by the end of 2014. Time is money, as it needs to empty the field of its 700 million barrels of reserves before DNO's concession expires in 2030.

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